Bank of India evaluating merger opportunities, says MD & CEO Mohapatra

With 160 deals, IT and ITES was the busiest sector followed by manufacturing and healthcare (47). The banking, financial services and insurance (BFSI) space was third, recording 41 deals. Let's take a look at the biggest mergers and acquisitions in India this year. (Representative image)

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Public sector bank, Bank of India’s board is evaluating opportunities for merger with other banks, The Hindu Business Line reported.

The bank which is grappling with non-performing assets (NPAs) is looking to bring down bad debt to a reasonable level before it can initiate merger talks.

Dinabandhu Mohapatra, Managing Director and Chief Executive Officer of Bank of India said, on the side lines of CII event in Kolkata, that the bank is having discussion and examining the possibility of merger with other bank.

The bank has to become strong in order to draw interest of another bank, said Mohapatra.

There have been talks of bringing down the number of public sector banks to 10 from 21 in the medium term after the State Bank of India merged associates bank with itself along with Bharatiya Mahila Bank.

Finance Minister Arun Jaitley has said on several occasions that the country needs 5-6 banks of global size and scale and further consolidation in the banking sector will be done at an appropriate time.

The bank had an exposure to 10 accounts out of 12 referred by Reserve Bank of India (RBI) to National Company Law Tribunal (NCLT) for insolvency proceedings.

Bank of India's gross NPAs declined to 13.05 percent in June quarter compared to 13.38 percent in the same period last year. Net NPAs declined to 6.7 percent from 7.78 percent in the corresponding period last year.